The Faber Report

  Friday, 11 Jan 2019 | 9:40 AM ET

Faber Report: Fox says it will not bid for regional sports networks

CNBC's David Faber reports on Twenty-First Century Fox's announcement that it has no intention to bid on the regional sports networks that Disney had been pursuing. »Read more
  Friday, 11 Jan 2019 | 9:36 AM ET

Carl Icahn builds stake in Caesars Entertainment: Sources

Posted ByDavid Faber

Billionaire activist investor Carl Icahn is building a stake in casino company Caesars Entertainment, sources familiar with the situation said.

The size of Icahn's stake is not immediately known.

Caesars shares jumped more than 5.5 percent on Friday. The shares dropped 46 percent last year.

Icahn did not immediately respond to a CNBC request for comment.

Last year, another billionaire proposed to make a deal for shares of the casino operator. Tilman Fertitta and advisors offered $13 a share in cash and stock, CNBC reported in October. Fertitta owns the Houston Rockets basketball team and the hospitality company Landry's, which includes Golden Nugget Casinos, Morton's steakhouses and the Rainforest Cafe.

Fertitta would have been chairman and CEO of the combined company, sources told CNBC at the time.

Casinos have become hot investment lately. The activist hedge fund Starboard Value has reportedly been building a modest stake in MGM Resorts International. MGM is on a cost-cutting initiative to boost profit by $300 million annually.

Last year, Icahn cashed out his stake in Tropicana Entertainment, selling it for $1.85 billion to Gaming and Leisure Properties and Eldorado Resorts. In 2017, he sold the shuttered Trump Taj Mahal casino in Atlantic City to Hard Rock International.

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  Friday, 11 Jan 2019 | 9:17 AM ET

'New Fox' focused on being growth company, sources say

Posted ByDavid Faber

The new Fox is focused on being a growth company, sources tell CNBC.

The trimmer version of the news company said in a regulatory filing Friday that it has "no intention" of bidding for the regional sports networks that were part of its sale of assets to Disney last year.

The second round of bids for those regional sports networks are due at the end of January, the sources said. Sinclair seems to be the sole bidder. Amazon is not bidding after considering a deal. The private equity firms Blackstone and Apollo had hoped to partner with Fox on a bid, the sources said.

Twenty-first Century Fox sold movie studio and television assets to Disney last year, and the new Fox, run by Lachlan Murdoch, is focused on news. Disney, which owns the sports network ESPN, has said it would sell the regional sports networks acquired in the Fox deal.

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  Monday, 7 Jan 2019 | 9:13 AM ET

California utility PG&E faces at least $30 billion fire liability, sources say

Posted ByDavid Faber
An aerial view of Paradise, California off of Clark Road on Nov. 15, 2018. The Camp Fire has burned more than 7,000 structures in Paradise. 
Carolyn Cole | Los Angeles Times | Getty Images
An aerial view of Paradise, California off of Clark Road on Nov. 15, 2018. The Camp Fire has burned more than 7,000 structures in Paradise. 

California utility PG&E faces at least $30 billion in liability for fires in 2017 and 2018, sources tell CNBC.

The figure doesn't include penalties, fines or punitive damages, the sources said.

The report comes as the utility considers bankruptcy protection for some or all of its business as it faces a big fourth-quarter charge related to liability for the fatal fires, Reuters reported Friday. The Camp Fire in early November wiped out the mountain town of Paradise, killing at least 86 people in what has been described as the deadliest wildfire in California's history.

Shares of PG&E are down 49 percent in the last three months. The stock fell 21 percent in midmorning trading Monday.

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  Wednesday, 12 Dec 2018 | 9:38 AM ET

Qualcomm presents evidence Apple breached court order

CNBC's David Faber reports on Qualcomm presenting evidence that Apple did breach a court order related to two Qualcomm patents. »Read more
  Wednesday, 12 Dec 2018 | 9:18 AM ET

Qualcomm says Apple is still selling iPhones in China, breaching court order

Posted ByDavid Faber

Qualcomm says Apple continues to sell iPhones in China, breaching a recent court order.

The chipmaker has presented evidence to the court in the form of a video showing iPhones being unboxed and sold.

Earlier this week, a court in China granted Qualcomm an injunction against Apple, banning sales of nearly all iPhones in China. But Apple pushed back, saying the ban only applies to devices that run on an older operating system. iPhones currently run on the iOS 12 version of software. Qualcomm is awaiting word on whether the court plans to enforce the injunction.

Apple had no comment on Wednesday. On Monday it said, "Qualcomm's effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world."

The court decision related to two Qualcomm patents that enable users to adjust and reformat photos and manage applications using a touch screen when viewing an navigating apps on their phones.

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  Monday, 10 Dec 2018 | 9:00 AM ET

China court grants Qualcomm injunction against Apple, banning sale of some iPhones

Posted ByDavid Faber

A court in China has granted Qualcomm an injunction against Apple.

The court has banned the import and sale of nearly all iPhone models in China, according to a statement Monday from Qualcomm. Apple is already disputing the scope of the ban, saying it only applies to iPhones that run on an older operating system.

Apple shares lost 2 percent on Monday morning but later turned positive, while shares of Qualcomm rose 3 percent. Apple's stock turned negative for 2018 on Friday and is already down 26 percent this quarter.

"Qualcomm's effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world," Apple said in a statement. "All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts."

The patents in question only affect iOS 11, the operating system for iPhones and iPads that launched in 2017, Apple says. iPhones sold today run iOS 12, the new version of the software that launched in September.

The Fuzhou Intermediate People's Court in China granted the two preliminary injunctions against four Apple subsidiaries in China. It relates to two Qualcomm patents that enable users to adjust and reformat the size and appearance of photos and to manage applications using a touch screen when viewing and navigating apps on their phones. iPhones are currently sold with the operating system iOS 12, which Apple says does not violate the patents in question.

In a statement, Qualcomm said, "We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights."

The statement, from General Counsel Donald Rosenberg, added, "Apple continues to benefit from our intellectual property while refusing to compensate us. These Court orders are further confirmation of the strength of Qualcomm's vast patent portfolio."

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  Tuesday, 20 Nov 2018 | 9:45 AM ET

Amazon bids for Disney's 22 regional sports networks, including YES Network, sources say

Posted ByDavid Faber

Amazon is bidding for all of the 22 regional sports TV networks that Disney acquired from Twenty-First Century Fox.

The e-commerce giant's bid includes the New York-based YES Network, sources familiar with the matter told CNBC. It is bidding for the New York network along with an unknown sovereign wealth fund and the Yankees, the sources said. YES may be sold separately from the other networks.

In addition to Amazon, Apollo Global Management, KKR, The Blackstone Group, Sinclair Broadcast Group and Tegna also made first-round bids for the full slate of networks, the sources said.

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  Tuesday, 20 Nov 2018 | 9:40 AM ET

Faber Report: Amazon bids for Disney's 22 Regional Sports Networks

CNBC's David Faber reports on the start of bidding for regional sports networks. »Read more
  Monday, 19 Nov 2018 | 9:44 AM ET

Arconic buyout deal could be announced by mid-December, sources say

Posted ByDavid Faber

Arconic could announce a deal on a leveraged buyout by mid-December, sources tell CNBC.

The aluminum products maker has been mulling offers, and the sources tell CNBC a deal is likely in a few weeks. Apollo Global Management reportedly offered $11 billion last month, while another bidding group including the buyout giants Blackstone, Carlyle and Onex have also been exploring a bid.

Arconic was spun out of Alcoa in 2016 and said earlier this year that it would begin a strategy and portfolio review.

Activist hedge fund Elliott Management has been pushing the company to explore a sale. Elliott is expected to roll its equity in the company into the buyout, the sources told CNBC.

If a deal does come to fruition, it could be the largest leveraged buyout since the big buyout boom that preceded the financial crisis.

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